Paying Dividends

The Alaska Senate’s plan for finding the money to pay for full Permanent Fund dividends includes breaking into the most sacrosanct of the state’s piggy banks.

The House has passed the budget. It’s the Senate’s turn. Senators have to decide how much to cut schools and health care, the ferry system and the University of Alaska. Where do leading senators stand, and what do they see happening next?

Gov. Mike Dunleavy's austerity budget isn't going over smoothly in the legislature. Now, he's taking his fiscal plan on the road with stops in communities from Nome to Fairbanks to Kenai. Members of the state House have also been talking about the budget in towns across Alaska. So, as Alaskans got up close and personal with their elected representatives -- what’s the message?

Governor Mike Dunleavy was elected on pledges to pay big Permanent Fund dividends to Alaskans while cutting state government. Now his detailed proposal to do that is not exactly going over smoothly with lawmakers, even those in his own party, like the Republicans who control the Senate.

Along with the Gov. Mike Dunleavy's proposed spending cuts come job losses. Depending on which economist you ask, the state could lose anywhere from 600 government jobs to at least 12,000 jobs in fields like education and healthcare. But Dunleavy is also proposing to inject almost $2 billion dollars back into the state's economy through a larger PFD, arguing that the PFD and private sector will make up for job losses that come from spending cuts.  

Alaska’s new governor promised to pay dividends of more than $6,000 when he was running for office. But delivering on that promise isn’t going to be simple. It might not even be possible, because the legislature that holds the permanent fund’s purse strings. What do lawmakers think about Dunleavy’s promise? Will they work with him or against him to balance the budget and pay big dividends?

On February 11, KTOO and Alaska Public Media launch Paying Dividends, a new podcast that will follow along with the legislative session as the high stakes debate over the Permanent Fund and the state's budget plays out in Juneau.